PresentValue

Calculates the present value of a stream of cash flows

Diagram

Information

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The PresentValue component will accumulate a discounted cash flow stream. The discount factor at any time is given by the accumulation function a(t) for a given interest rate, that may be either a constant (rate) or a variable input (u_r).

Acknowledgements

Additional information can be found on Jim Hines' Molecules of Structure website: →Present Value.

See also

TimeValueOfMoney, AccumulationFunction, ForceOfInterest

Parameters (4)

initialValue

Value: 0

Type: OutputType

Description: Initial PV at start time

rate

Value: 0.05

Type: Rate (1/s)

Description: Constant discount rate per period (optional)

hasConstantRate

Value: false

Type: Boolean

Description: If true the discount rate is a constant parameter

isCCR

Value: true

Type: Boolean

Description: If false the given rate is transformed to a continuously compounding rate

Connectors (3)

y

Type: RealOutput

Description: Information output signal

u

Type: RealInput

Description: Cash stream input

u_r

Type: RealInput

Description: Discount rate input

Components (5)

futureValueFactor

Type: AccumulationFunction

Description: Accumulation function a(t)

discountedStream

Type: Division

Description: Discounted stream of cash flows

PV

Type: InformationLevel

Description: Present Value for stream of cash flows

increasingPV

Type: Growth

Description: Present value is accumulation of discounted CF-stream

parRate

Type: ConstantConverterRate

Description: Discount rate